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Top 5 Things to Know in the Market on Friday

Published 03/11/2017, 10:12
Updated 03/11/2017, 10:30
© Reuters.  5 key factors for the markets on Friday
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Investing.com - Here are the top five things you need to know in financial markets on Friday, November 3:

1. Focus on U.S. jobs report

Markets will focus their attention Friday on the October nonfarm payrolls report to be released at 8:30AM ET (12:30GMT).

The consensus forecast is that the data will show jobs growth of 310,000, bouncing back from a hurricane-related decline of 33,000 in September, while the unemployment rate is forecast to hold steady at 4.2%.

The strength in the labor market has supported the view that the Federal Reserve will move ahead with a rate hike at its next meeting in December.

In that light, most of the focus will likely be on average hourly earnings figures, which are expected to rise 0.2% after gaining 0.5% a month earlier.

2. Trump travels to Asia, other references on tap

With U.S. President Donald Trump having revealed a day earlier his choice of Jerome Powell to replace current Fed chair Janet Yellen and Republicans having launched their proposal for massive tax cuts, the U.S. chief will be heading to Asia on Friday for a series of geopolitical and economic talks with the likes of Japan, South Korea, China, Vietnam, and the Philippines.

China may well be the market's major focus as Trump is expected to discuss trade with the President Xi Jinping as well as critique Chinese support for North Korea.

On the economic front stateside, and apart from the U.S. employment report, market players will keep track of September factory orders and the October ISM non-manufacturing purchasing managers’ index (PMI), both due out at 10:00AM ET (14:00GMT).

Minneapolis Fed president Neel Kashkari is also scheduled to participate in a moderated Q&A with Women in Housing and Finance at 12:15PM ET (16:15GMT).

3. Apple surges to all-time high after earnings, iPhone X strength

Shares in Apple (NASDAQ:AAPL) were up more than 3% in pre-market trade Friday, hitting an all-time high, following reporting earnings after the prior market close that beat consensus and offering a fiscal first-quarter forecast that topped estimates.

Further supporting shares on Friday, reports of the iPhone X launch in Asia showed strong demand, with long lines forming throughout the region.

4. Dow poised for fresh record high as Apple supports bullish sentiment

U.S. futures pointed to a higher open on Friday with the Dow poised to mark a fresh record high as a jump in Apple shares increased buying sentiment on the blue-chip index. At 6:10AM ET (10:10GMT), the blue-chip Dow futures rose 38 points, or 0.16%, S&P 500 futures inched up 1 point, or 0.05%, while the Nasdaq 100 futures traded up 19 points, or 0.31%.

Elsewhere, European equities showed mixed trade on Friday as investors weighed earnings reports and French bank Societe Generale (PA:SOGN) dampened sentiment in bank stocks.

Earlier, Asian shares closed with mixed readings as market participants digested the Republican plans for U.S. tax cuts, took in the widely expected appointment of Fed governor Jerome Powell to the head of the U.S. central bank and tech suppliers to Apple celebrated the iPhone manufacturer’s results. The Japanese stock exchange remained closed for a holiday.

5. Oil extends rally from highest close in 2 years

Oil extended its rally on Friday, on track for weekly gains of around 1.6%, after West Texas Intermediate hit its highest closing price a day earlier since July 2015.

Hopes that major oil producers will agree to extend their production cut agreement at their November 30 meeting in Vienna have supported prices as investors look for the global market to rebalance.

Saudi Arabia continued to cut oil output as inventories declined significantly in October, Saudi Energy Minister Khalid Al-Falih said Thursday while compliance with the OPEC-led accord to curb output had been “excellent”.

Falih also expressed a desire to continue with output curbs, saying that OPEC should work to ensure stockpiles continue to fall beyond March.

Iraq, the second-biggest OPEC producer, backs extending the curbs for a further nine months, Oil Minister Jabbar al-Luaibi said in Baghdad

U.S. crude oil futures rose 0.53% to $54.83 at 6:11AM ET (10:11GMT), while Brent oil traded up 0.36% to $60.84.

Later on Friday, market participants will also keep an eye on U.S. shale production when Baker Hughes releases its most recent weekly rig count data.

Last week that oil services provider said that oil rigs operating in the U.S. rose by one to 737, snapping three consecutive weeks of declines.

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